In a report on Jan. 2, the international non-governmental and lobbying organization said that crypto will continue to be an integral part of the “modern economic toolkit.”
The WEF acknowledged the calamitous previous year, labeling it as “terrible,” with more than $2 trillion getting wiped out.
Additionally, the Switzerland-based political and economic forum fingered regulators for failing to “create sensible regulations” but added that they have been vindicated by “multiple large-scale failures” in 2022.
The report was penned by Circle’s Chief Strategy Officer and Head of Global Policy, Dante Disparte.
Happy New Year! Following an annus horribilis for #Crypto in 2022, now more than ever demonstrable utility value is the order of the day. Sharing my @wef #WEF23 reflections on what the future holds and how @circle is navigating turbulence. https://t.co/emR4cHNbu3
– Dante Disparte (@ddisparte) January 2, 2023
WEF Positive on Blockchain
Moving on to the positives, the report compared the crypto contagion of 2022 to the dot com fallout in 2000, which resulted in an evolution of the internet to more durable companies and business models.
“Perhaps 2022 marks a handover of crypto technology and blockchain infrastructure to steadier hands,” it added.
It stated that big banks and financial service providers should be observed this year in their approach to crypto.
“The embrace of crypto technology is equally inevitable, even if the term feels like a bad word. For all its faults, this technology remains a protagonist in the global financial world.”
The WEF stated that there are many examples of good technology being manipulated by bad actors, however, with crypto, it has happened at high speed.
Crypto was indeed spawned by anonymous trading on the dark web in years that were plagued with hacks and thefts. Likewise, the early days of the internet were plagued with viruses and scams, yet email and the World Wide Web did not get banned.
In conclusion, the report said that the technology will mature and flow into the hands of more responsible actors within a robust regulatory framework. In other words, crypto is here to stay.
Crypto Market Outlook
It may be a while before crypto markets, and token prices recover, however. There is still very low volatility, with total capitalization hovering around the same level at $839 billion, according to CoinGecko.
There has been very little movement in either direction since mid-December as the consolidation continues into the new year.
Bitcoin was trading up a little from weekend levels at $16,686 at the time of writing; meanwhile, Ethereum was up 1.5% on the day at $1,214.
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